The Transformation 20

STRATEGIC CHANGE RANKINGS FOR 2019

Spotlighting the 20 global companies that have achieved the
highest-impact business transformations over the past decade

By Scott D. Anthony, Alasdair Trotter, Rob Bell and Evan I. Schwartz

BEGIN READING
»» Introducing
Introducingthe
the
Transformation
Transformation2020
THE TRANSFORMATION 20
»» Top-Level Themes from
the Transformation 20

»» The Five Behaviors S ometimes it’s a financial

crisis, sometimes it’s the
threat from a disruptive competitor,
To better understand the dynamics
of why and how transformation
happens, Innosight developed a
outside the core that can be
attributed to new growth areas.
of Transformational
Organizations sometimes growth just hits a wall, methodology to evaluate strategic 2. Repositioning the Core
sometimes it’s the opportunity change efforts, with the aim of How effectively has the company
»» Seven Transformations to ride a global megatrend and identifying best practices across adapted its traditional core
to Watch
sometimes it’s simply the result of industries and public companies to changes or disruptions in
systematic planning for the future. that exemplify leadership its markets, thus giving its
»» T20 finalists are
headquartered excellence. While other business legacy business new life?
across the world Whatever motivates a leadership rankings rely on metrics such as
team to embark on strategic revenue, market value or subjective 3. Financials
»» Conclusions transformation, it’s often easier in assessments such as “most Has the company posted strong
the short term not to undertake innovative,” the Transformation financial and stock market
»» T20 Methodology the challenge (or delay the 20 research team screened all performance, or has it turned
decision for just one more year), the companies in the S&P 500 around its business from losses or
»» T20 Panel of Judges
which is why stories of successful and the Global 2000 by looking slow growth to get back on track?
corporate change efforts are so across three categories of data: We looked at revenue compound
»» About the authors
and Innosight rare. Yet strategic transformation annual growth rate (CAGR),
— adapting a core business to 1. New Growth profitability and stock price CAGR
»» Snapshots of the disruptive change while also How successful has the company during the transformation period,
T20 Companies creating new growth around new been at creating new products, which was different for each firm.
products, services or business services, markets and business
models — may be the leadership models? This includes our primary Our initial phase of research
imperative of the 21st century. metric: the percentage of revenue identified 52 companies making

2
»» Introducing
Introducingthe
the substantial progress toward “What businesses are doing here is fundamentally
Transformation
Transformation2020 transformation — merely 3%
changing in form or substance. A piece, if not the
of the public companies in our
»» Top-Level Themes from
data set. From this second- essence, of the old remains, but what emerges
the Transformation 20
round list, an Innosight partner
is clearly different in material ways. It is a liquid
»» The Five Behaviors panel voted to narrow it down
of Transformational to 27 finalists. For the third becoming a gas. Lead turning into gold. A caterpillar
Organizations round, the Transformation 20
becoming a butterfly.”
winners were selected by a panel
»» Seven Transformations of management experts (see — — I NNOSIGHT’S SCOTT ANTHONY AND MARK JOHNSON, WITH CLARK GILBERT,
to Watch IN THEIR BOOK, DUAL TRANSFORMATION (HBR PRESS, 2017)
the full methodology and list
of judges on pages 20-21).
»» T20 finalists are
headquartered Ørsted's Transformation global overproduction sent gas
across the world The 2019 list includes 20 firms, Consider the case of Ørsted, prices plunging by 90% over
versus 10 for our previous the Copenhagen-based energy several years. S&P downgraded
»» Conclusions rankings in 2017. The immediate company which, at No. 7, is the 6,000-employee firm’s
reason for the bigger list is the highest-ranked European credit rating to negative, raising
»» T20 Methodology that the judges’ scores were firm on the list. While every the cost of its considerable
extremely close, as all 20 of transformation story is different debt. The board hired a former
»» T20 Panel of Judges
these firms have achieved and yields valuable leadership leader of the transformation
compelling results. But the wider lessons, this one happened to be at LEGO, Henrik Poulsen, as
»» About the authors
and Innosight reason may be that awareness triggered by an industry crisis. the new CEO. Whereas some
of transformation itself seems leaders might have gone into
»» Snapshots of the to be widening, with more and The Crisis crisis management mode,
T20 Companies more companies recognizing In 2012, Denmark’s largest laying off workers until prices
the urgency of the challenge, energy company, founded as recovered, Poulsen recognized
as well as what a profound Danish Oil and Natural Gas, slid the moment as an opportunity
shift these efforts represent. into a financial predicament as for fundamental change.

3
» Introducing
Introducingthe
the The Transformation Plan
Transformation
Transformation2020 “We saw the need to build an
entirely new company,” Poulsen
» Top-Level Themes from
told Innosight. “It had to be a
the Transformation 20
radical transformation; we needed
» The Five Behaviors to build a new core business and
of Transformational find new areas of sustainable
Organizations growth. We looked at the mandate
to combat climate change and
» Seven Transformations we became one of the few
to Watch
companies to wholeheartedly
make this profound decision,
» T20 finalists are VIDEO: Ørsted’s North America CEO Thomas Brostrøm reveals the biggest challenges of transforming.
headquartered to be one of the first to go
across the world from black to green energy.”
Discovering New The Results
» Conclusions Adapting the Core Growth Areas The company was renamed
Poulsen emphasized both the The company had invested in Ørsted after the legendary Danish
» T20 Methodology short-term and long-term nature offshore wind power, but the scientist Hans Christian Ørsted,
of the change. “We looked at the technology was still too expensive, who discovered the principles of
» T20 Panel of Judges
12 different lines of business we producing energy that was electromagnetism. This helped
were in and went through them more than double the price of infuse a sense of purpose into the
» About the authors
and Innosight asset by asset, to see where onshore wind. So the company organization that drove it to cut the
we saw competitive strength. embarked on a systematic cost of offshore wind power by 63%
» Snapshots of the Coal, oil and gas were rapidly “cost-out” program to reduce while building three major, new,
T20 Companies eroding as businesses, so we the expense of every aspect of ocean-based wind farms in the U.K.
decided to divest eight of our building and running offshore and acquiring a leading company in
twelve divisions and use the wind farms while achieving the U.S. to pioneer North American
proceeds to reduce our debt.” scale in this emerging market. offshore waters (see video).

4
»» Introducing
Introducingthe
the Previously 80% owned by the than $3 billion since 2013, and With this set of criteria and
Transformation
Transformation2020 Danish government, Ørsted’s IPO in Ørsted is now the world’s largest such stories in mind, we
2016 was one of the year’s largest. offshore wind company, with a 30% present the T20 for 2019:
»» Top-Level Themes from
Net profits have surged by more share of a booming global market.
the Transformation 20

»» The Five Behaviors The Transformation 20

of Transformational NEW GROWTH AREAS STOCK CAGR
COMPANY CEO
Organizations (% of total business) (vs. benchmark since base year of transformation)

#1. Netflix* Reed Hastings original content (44%) 59% (vs. 10% for S&P 500 since 2012)
»» Seven Transformations #2. Adobe* Shantanu Narayen “digital experiences” (27%) 26% (vs. 10% for S&P 500 since 2009)
to Watch
#3. Amazon* Jeff Bezos Amazon Web Services (11%) 39% (vs. 10% for S&P 500 since 2009)
#4. Tencent Pony Ma Huateng fintech, transportation (25%) 32% (vs. 1% for Hang Seng – 2011)
»» T20 finalists are
#5. Microsoft* Satya Nadella intelligent cloud (29%) 17% (vs. 9% for S&P 500 since 2010)
headquartered
across the world #6. Alibaba Daniel Zhang fintech/sports/entertainment (14%) 8% (vs. 1% for NYSE Index since 2013)
#7. Ørsted Henrik Poulsen offshore wind (37%) 30% (vs. 0% for OMX Copenhagen – 2017)
»» Conclusions #8. Intuit Sasan Goodarzi “online ecosystem” (14%) 22% (vs. 10% for S&P 500 since 2012)
#9. Ping An Ma Mingzhe fintech and health tech (6%) 17% (vs. 2% for SSE Index since 2012)
»» T20 Methodology #10. DBS Group Piyush Gupta global digital platforms (48%) 12% (vs. -1% for Singapore Xchange – 2013)
#11. A. O. Smith Kevin Wheeler water tech (100%) 25% (vs. 10% for S&P 500 since 2009)
»» T20 Panel of Judges
#12. Neste Peter Vanacker renewable fuels (70%) 24% (vs. 7% for OMX Helsinki 25 – 2010)
#13. Siemens Joe Kaeser “digital factory” initiative (26%) 8% (vs. 8% for the DAX Index since 2012)
»» About the authors
and Innosight #14. Schneider Jean-Pascal Tricoire IoT solutions (22%) 8% (vs. 6% for S&P Global 100 since 2012)
#15. Cisco Chuck Robbins subscription applications (43%) 9% (vs. 9% for S&P 500 since 2010)
»» Snapshots of the #16. Ecolab Douglas Baker Jr. water and energy services (44%) 16% (vs. 9% for S&P 500 since 2011)
T20 Companies #17. Fujifilm Shigetaka Komori healthcare/medical imaging (18%) 7% (vs. 6% for Tokyo Exchange – 2010)
#18. AIA Group Ng Keng Hooi wellness & prevention (10%) 15% (vs. 2% for Hong Seng Index – 2013)
#19. Dell Tech.** Michael Dell infrastructure & security (51%) 29% (vs. 11% for S&P 500 since 2013)
#20. Philips Frans van Houten healthcare (65%) 6% (vs. 6% for S&P 500 since 2014)

*previous winners, from the 2017 T10 ranking **Dell stock includes the periods the stock was public 5
»» Introducing the
Transformation 20
TOP-LEVEL THEMES FROM
»» Top-Level
Top-LevelThemes
Themesfrom
from THE TRANSFORMATION 20
the Transformation
Transformation2020

»» The Five Behaviors

of Transformational
Organizations To transform a large
organization with a legacy
business, leaders must identify one
The 4 Major Transformation Themes

»» Seven Transformations or more opportunity areas that are

to Watch
large enough to make a difference
and significant enough to inspire a
»» T20 finalists are Digital Combating Transforming Fintech-Enabled
headquartered compelling story of change. Within Transformation Climate Change Healthcare Business Models
across the world the Transformation 20, there
were four distinct themes that
»» Conclusions emerged — digital transformation,
combating climate change, companies on the list, half of Four of the firms — Ørsted,
»» T20 Methodology transforming healthcare and new the firms are transforming by Ecolab, Neste and A. O. Smith
fintech-enabled business models. creating new kinds of digital — transformed by creating
»» T20 Panel of Judges
experiences or services that are new growth through cleantech
Overwhelmingly, the biggest driving new value for customers. business models in renewable
»» About the authors
and Innosight theme for growth, especially in energy or water services.
core markets, is diving deeply When it comes to new growth
»» Snapshots of the into digital waters by harnessing areas, the mandate to combat The theme of healthcare
T20 Companies new business models for the global climate change and deal transformation also proved to
cloud, the internet of things, with the ramifications of a warming be a major global opportunity
artificial intelligence and other planet has infused organizations area — with Philips, AIA Group,
technologies. Among the 20 with a transformative purpose. Fujifilm Holding and Ping An

6
» Introducing the serving as prime cases. The “These global tech powerhouses are building new
Transformation 20 shift from traditional sick care
business models to preventative
business ecosystems and, in the process turning China
» Top-Level
Top-LevelThemes
Themesfrom
from
the Transformation
Transformation2020
care and wellness has proven into a culture where transformation is part of the DNA.”
to be especially powerful for
» The Five Behaviors galvanizing organizations. companies that merely copied to their transformation momentum
of Transformational existing products and services, fading or, more commonly, having
Organizations Finally, the theme of fintech — the Chinese firms on the T20 those efforts play out successfully.
turning complex financial services are world-class innovators. The most notable of those firms is
» Seven Transformations into simple, disruptive technologies Apple, which underwent one of the
to Watch
— proved to be a vital area of new Other common threads include most successful transformations
growth. This is especially true in the fact that these transformation in business history but is now
» T20 finalists are
headquartered China, for firms such as Alibaba efforts take considerable time focused on executing its existing
across the world and Tencent Holdings, where to play out and pay off. Most of strategy rather than aggressively
a new generation of consumers the transformations on our list entering new growth areas.
» Conclusions aren’t wed to traditional banking started at least five years ago.
or financial institutions.
» T20 Methodology It’s instructive to contrast the T20
These global tech powerhouses are list of 2019 with the original T10 list
» T20 Panel of Judges
building new business ecosystems, in 2017. While four companies from
and in the process turning China then — Adobe, Amazon, Netflix
» About the authors
and Innosight into a culture where transformation and Microsoft — have also scored
is part of the DNA. Whereas China near the top of the new list, several
» Snapshots of the used to be criticized for producing firms have dropped off, due either
T20 Companies

7
» Introducing the
Transformation 20
THE FIVE BEHAVIORS OF
» Top-Level Themes from TRANSFORMATIONAL ORGANIZATIONS
the Transformation 20

» The Five
Five Behaviors
Behaviors
of Transformational
Transformational
Organizations
Organizations By looking more deeply
into these strategic
transformations and analyzing
Successful leaders overcome
this resistance by creating a
galvanizing mission for the
not being the biggest anymore.
So we had to deal with all this
unintended emotional stuff.”
» Seven Transformations the tough decisions made by the organization. Entering new growth
to Watch
leaders of our T20 companies, markets is the “what” that propels In the early 2000s, when Baker
we saw five deeply ingrained a transformation, but leaders became CEO, Ecolab was an
» T20 finalists are
headquartered behaviors that can be distilled also need to tell the story of 80-year-old firm growing 10%
across the world into a set of takeaway lessons for “why.” The companies on the list annually by focusing on industrial
leaders who are embarking on have infused a higher-purpose cleansers and food safety. “Our
» Conclusions their own transformation journey: calling into the culture, and this strategic plan was to sell more
helps guide big decisions and of what we had,” Baker says. To
» T20 Methodology 1. They create a higher- give clarity to everyday tasks. grow much beyond its $3.8 billion
purpose mission. in revenue, the company could
» T20 Panel of Judges
Leadership teams embarking The No. 16 company on our list, have kept moving into adjacent
on transformation often come Ecolab, is a prime example of markets or new geographies, but
» About the authors
and Innosight up against active opposition finding a higher purpose even Baker felt that wasn’t bold enough.
from those in the organization when the company was not
» Snapshots of the who are not comfortable with facing an existential crisis. “We The transformation began by
T20 Companies change, as well as the sheer had resistance to change within talking to customers, Baker
inertia of the way things have the core organization,” says says. The same customers who
been done in the past. Ecolab CEO Douglas Baker were buying its core products
Jr. “They didn’t like the idea of were also voicing concerns

8
»» Introducing the about access to clean water. And “We broadened our mission
Transformation 20 they weren’t alone. Projections and our purpose statement
for the year 2030 showed that changed, to clean water, safe
»» Top-Level Themes from
70% of the world’s GDP would food, abundant energy, healthy
the Transformation 20
be based in water-stressed environment,” Baker says. The
»» The Five
Five Behaviors
Behaviors regions, California and Southern change in the mission — from
of Transformational
Transformational India being prime examples. the previous “to make the world
Organizations
Organizations a cleaner, safer and healthier
In 2011, Ecolab had a $12 billion place” — reflects how Ecolab
»» Seven Transformations market cap when it acquired intends to make the world a better
to Watch
water technology company place, and the specificity itself
Nalco in an $8 billion deal. The has been galvanizing. “As our
»» T20 finalists are
headquartered combined company is now teams widened their awareness
across the world one of the world’s leading of global issues, our pride has
suppliers of chemistry, hardware been enhanced,” Baker adds.
»» Conclusions and software that helps
manufacturers and service firms Protecting and healing the planet Douglas Baker, Ecolab
»» T20 Methodology become more efficient users of has also proved to be financially
water. A primary metric driving rewarding. Ecolab’s market to move from just distributing
»» T20 Panel of Judges
the organization is how much value now stands at $58 billion, content digitally to becoming a
water is saved by its clients placing it among America’s producer of original content that
»» About the authors
and Innosight annually, which now stands at 100 most valuable firms. could win Emmys and Oscars.
188 billion gallons, against a 2030
»» Snapshots of the target of 300 billion gallons. The No. 1 company, Netflix, is As the memo said, “We don’t and
T20 Companies another case in point. In 2013, can’t compete on breadth with
CEO Reed Hastings released Comcast, Sky, Amazon, Apple,
an 11-page memo to employees Microsoft, Sony, or Google. For us
and investors detailing a mission to be hugely successful we have

9
» Introducing the to be a focused passion brand. “Focusing on purpose, rather than growth, is
Transformation 20 Starbucks, not 7-Eleven. Southwest,
not United. HBO, not Dish.” precisely what drives growth while also keeping
» Top-Level Themes from
the Transformation 20 employees engaged in executing a worthy mission.”
Since unveiling that new purpose,
» The Five
Five Behaviors
Behaviors Netflix revenue has roughly recognized a need for fundamental education and entertainment
of Transformational
Transformational tripled, its profits have multiplied change. Tencent Holdings began to autonomous vehicles and
Organizations
Organizations 32 times and its stock CAGR as an online chat and video ride-sharing to fintech and the
has increased by 59% annually, game provider catering to the industrial internet — areas that
» Seven Transformations versus 10% for the S&P 500. new generation of digital natives together now represent 25% of its
to Watch
in China. Its original corporate $46 billion revenue. This growth
In a comparable way, other objective, according to early annual helped Tencent become the first
» T20 finalists are
headquartered organizations on the list have reports, was simply to harness Asian company to surpass $500
across the world transformed by embracing a the internet opportunity. As of billion in market valuation.
purpose-driven mission of making 2005, shortly after its IPO, Tencent
» Conclusions people healthier and preventing defined its purpose in terms of In 2019, the company refined
illness. China’s AIA Group has “implementing our Online Lifestyle its mission once again, in
» T20 Methodology moved beyond insurance to strategy, which strives to cater to response to the growing global
become a wellness company, the basic needs of our users.” backlash against technology’s
» T20 Panel of Judges
whereas Dutch electronics giant dominance in our lives, boiling it
Philips has largely divested its Only in subsequent years did down to: tech for social good.
» About the authors
and Innosight legacy lighting business to focus founder and CEO Pony Ma Huateng
on healthcare technology. broaden the firm’s outlook by “Rather than the techno-
» Snapshots of the embracing a mission of “improving optimism of the past, people
T20 Companies The information technology the quality of human life through are becoming increasingly
companies on our list also digital innovation.” Since 2011, cautious of technology,” the
discovered ways to infuse purpose Tencent has invested heavily in company announced. “We should
into their organizations that new growth areas — ranging from make careful choices instead

10
»» Introducing the of being blindly optimistic.” The Intuit leadership team In a similar way, Ørsted exited
Transformation 20 concluded that redeploying talent its historic fossil fuel business,
This sense that there is a higher and capital to the new growth divesting eight of its 12 divisions to
»» Top-Level Themes from
purpose besides growth itself business meant that it had to make embark on offshore wind farming,
the Transformation 20
is a common thread among the tough choices of which businesses part of its mission to become
»» The Five
Five Behaviors
Behaviors T20 companies. As Ørsted’s to exit. “We sold off five divisions the world’s greenest energy
of Transformational
Transformational Poulsen concludes, “It has been and product lines including our company. Microsoft and Adobe
Organizations
Organizations important to drive purpose oldest franchise, Quicken, which have nearly finished phasing out
inside the company. It’s been was the original business of the their once lucrative packaged
»» Seven Transformations turbulent but the new mission company. We sold it off, and software businesses to focus on
to Watch
is what has guided us.” The we also stopped all investment subscription services for the cloud.
result is somewhat counter- in our non-cloud platforms.”
»» T20 finalists are
headquartered intuitive: Focusing on purpose, In 2014, Siemens launched its
across the world rather than growth, is precisely Doing less better was also the Vision 2020 plan, which involved
what drives growth while also mantra for other companies on phasing out traditional businesses
»» Conclusions keeping employees engaged in the list. A. O. Smith completely in serving oil and gas companies
executing a worthy mission. exited its historic core of auto and industrial manufacturing so
»» T20 Methodology parts and motors to concentrate that it could build new business
2. They’re not afraid its investments on innovating divisions and transform into
»» T20 Panel of Judges
to let go of the past. its commercial and residential a digital services company for
To focus on the future, you often water heaters, as well as entering some of the same manufacturing
»» About the authors
and Innosight need to leave the past behind. Intuit the global water treatment companies that also needed
founder and executive committee market. “It’s all about water,” the to transform themselves.
»» Snapshots of the chairman Scott Cook explains it this company says, and that focus
T20 Companies way: “We stopped a bunch of things required jettisoning parts of its This was not a small decision for
on the theory of 'do less better.'" past that didn’t fit that mission. Siemens, as electric power was a
core business for 140 years and
had generated $30 billion and

11
» Introducing the employed 80,000 people. “It’s
Transformation 20 the right thing to do,” Siemens
chairman Jim Hagemann Snabe
» Top-Level Themes from
told Reuters. “It’s necessary and
the Transformation 20
courageous to trigger the planned
» The Five
Five Behaviors
Behaviors changes when the company is
of Transformational
Transformational doing well.” The spinoff gives
Organizations
Organizations Siemens the resources for investing
in its Digital Industries (DI) and
» Seven Transformations Smart Infrastructure (SI) divisions
to Watch
as the core of the new Siemens.

» T20 finalists are

headquartered 3. They leverage a core VIDEO: Siemens USA CEO Barbara Humpton zeros in on adapting the global brand to new growth markets.

across the world capability to enter new

growth markets. Humpton says the key was as Eastman Kodak, enjoying a
» Conclusions One of the biggest lessons from finding new growth opportunities near-monopoly market position
successful transformation efforts where Siemens could bring its in photographic film. But
» T20 Methodology is the ability to take advantage of brand clout and technological Fujifilm’s more expansive view of
being the industry incumbent, with know-how to the world’s “global business has been enormously
» T20 Panel of Judges
assets such as brand, customer megatrends,” from smart cities successful, whereas Kodak failed,
relationships, distribution to climate change to healthcare filing for bankruptcy in 2012.
» About the authors
and Innosight and other core capabilities. for an aging population, while also
building new capabilities for its Fujifilm invested heavily in
» Snapshots of the Siemens was struggling with what move into the internet of things medical imaging, leveraging
T20 Companies it means to be a cross-sector and data analytics (see video). existing chemical technology
conglomerate in an age where and know-how that the firm
each industry has focused players. Once upon a time, Fujifilm used in photographic film,
Siemens USA CEO Barbara Holdings was in the same boat launching a full product line

12
»» Introducing the of diagnostic equipment for honed for refining oil and gas. in order to make it easy to interact
Transformation 20 hospitals and other healthcare with, one can digitize the internal
providers. The company also China’s Ping An leveraged operations to make things more
»» Top-Level Themes from
developed and marketed its know-how and industry efficient or one can transform
the Transformation 20
pharmaceutical drugs using relationships as a traditional the underlying business models
»» The Five
Five Behaviors
Behaviors existing chemical compounds. health insurance company to to take advantage of data in
of Transformational
Transformational While its revenue has declined, launch an online healthcare order to create entirely new
Organizations
Organizations profits have turned from losses ecosystem platform called value propositions. While many
to healthy margins. As of 2010, Good Doctor. The advantage organizations focus on the first two,
»» Seven Transformations the company didn’t break of incumbency paid off, as many of our T20 winners chose
to Watch
out healthcare as a separate Good Doctor signed up over to power their transformation
business, except for noting that 3,000 hospitals, 1,000 health by identifying and launching
»» T20 finalists are
headquartered its X-ray film technology has clinics, 500 dental clinics and entirely new business models.
across the world been a mainstay of the company 7,500 pharmacies. This critical
since the 1930s. Currently, mass has attracted more than For DBS Bank, the transformation
»» Conclusions 18% of Fujifilm’s $22 billion in 265 million registered users, has been along many dimensions,
revenue comes from healthcare. enabling Ping An to stage an IPO from a national bank to a regional
»» T20 Methodology of the platform as a separate and global bank, and from
In a similar way, Schneider company, raising over $1 traditional banking services to new
»» T20 Panel of Judges
Electric leveraged its ability to billion from global investors. kinds of fintech business models.
create tech platforms to move But the common denominator
»» About the authors
and Innosight into creating an internet-of- 4. They seize the to all these efforts has been
things data analytics business digital opportunity via building new digital platforms,
»» Snapshots of the for energy management. new platforms and says Paul Cobban, chief data
T20 Companies Finland’s Neste seized on the business models. transformation officer. “We went
market for renewable biofuels “Digital” means different things public with an economic model
using some of the same to every organization. One can that would determine the value
industrial processes that it digitize the customer experience of our digital strategy,” Cobban

13
»» Introducing the says. “So we can measure how Netflix mines audience data to leading to a business representing
Transformation 20 much value we’re getting out of create an astonishing range of 10% of total revenue and growing
this approach.” Some powerful new shows. Not only does Netflix at an 85% rate last year. Other T20
»» Top-Level Themes from
results: In 2019, DBS became use data to drive the compelling firms have also reaped benefits
the Transformation 20
the first bank to simultaneously customer experience (e.g., even of investing heavily in new digital
»» The Five
Five Behaviors
Behaviors hold the titles “Bank of the Year” tailoring the images it uses for platforms for their customers.
of Transformational
Transformational (The Banker), “Best Bank in the each show to match customer Cisco has cultivated customer
Organizations
Organizations World” (Global Finance) and preferences), it has fundamentally relationships to find smart niches
“World’s Best Bank” (Euromoney). changed the way that it makes for new, value-added digital
»» Seven Transformations decisions about which shows to subscription services. Ecolab has
to Watch
One of the keys to that success pursue based on the data it collects created new digital platforms for
was not just going digital but on viewing behavior. For example, water analytics and distribution.
»» T20 finalists are
headquartered opening up a digital platform that there are numerous stories of
across the world others can play on, taking part potential showrunners (e.g., “The 5. Innovation isn’t isolated
of the playbook from companies Crown”) arriving to meet Reed to a department but is
»» Conclusions like Apple, Adobe and Amazon. Hastings, thinking they were there a strategic capability.
DBS launched the world’s largest to pitch the show, only to discover In many of these organizations,
»» T20 Methodology application protocol interface that Netflix had already used data strategic transformation has been
(API) protocol, where financial to make the decision to pursue the enabled by organizational-wide
»» T20 Panel of Judges
and retail partners can invisibly show based on its own analytics. efforts to improve the innovation
integrate DBS’s capabilities quotient. Such innovation efforts
»» About the authors
and Innosight into their systems. By late 2018, AIA Group’s transformation has are most effective when they aren’t
DBS demonstrated that digital taken the Hong Kong-based life relegated to any single department
»» Snapshots of the customers are at least twice as insurance company into a new and become ubiquitous across
T20 Companies profitable as traditional customers. global growth area, with its digital the organizations.
Vitality platform providing wellness
and prevention knowledge, tools
and motivation to AIA members,

14
»» Introducing the A key insight among successful its internal cloud technology value of each employee from 1
Transformation 20 innovators is that the organization to customers. Amazon Web to 5. Nadella came up through
clearly defines the different types Services is now a $26 billion the organization by growing its
»» Top-Level Themes from
of innovation that will enable the business that provides a lion’s Azure cloud business by asking
the Transformation 20
transformation. Some employees share of the company’s profits. questions about customer needs.
»» The Five
Five Behaviors
Behaviors will have to innovate the core “We went from a culture of know-
of Transformational
Transformational business, finding new ways to use In a similar way, Alibaba has it-alls to a culture of learn-it-alls,”
Organizations
Organizations data to strengthen the customer always made innovation the says Chris Capossela, Microsoft’s
experience. Other employees will key to everything, enabling it chief marketing officer.
»» Seven Transformations have to work on incubating or to expand beyond its roots as
to Watch
growing a new growth business. an e-commerce and internet These cultural traits of curiosity and
Others still will need to continue services company into new customer obsession are hallmarks
»» T20 finalists are
headquartered doing most of what they have growth areas, ranging from of innovative organizations, and
across the world been doing previously while also digital platforms for financial it’s precisely this behavior that
looking for operational efficiencies. services to digital media, to helps a large organization pivot
»» Conclusions AliHealth and AliSports. to a growth mindset.
The firms that clearly define the
»» T20 Methodology different types of innovation At Microsoft, CEO Satya By many accounts, this has
and then enable all employees Nadella has built a different served the organization well as
»» T20 Panel of Judges
to contribute in the most kind of culture of innovation, it moved away from its obsolete
appropriate way are those that less technological and more mission of “a computer on
»» About the authors
and Innosight rise to the top of the T20. customer-focused, than the every desktop,” which was
company led by his predecessors. technology-focused, to its current
»» Snapshots of the Jeff Bezos of Amazon.com has mission of “empower every
T20 Companies famously led the organization to This was accomplished largely person and every organization
obsess over the customer, rather by shifting its culture away on the planet to achieve more,”
than competitors, leading to the from one of competition, where which is customer-focused.
internet retail business taking managers were told to rank the

15
»» Introducing the
Transformation 20
SEVEN TRANSFORMATIONS TO WATCH
»» Top-Level Themes from
the Transformation 20

»» The Five Behaviors T hese finalist companies

advanced into the third round
of the analysis but fell short in the
only began in 2017 to embark on
its strategy for smart homes and
sustainability services. Others, like
of change in recent years. Yet all
of these firms remain impressive,
considering that more than 95%
of Transformational
Organizations judge’s ratings to make the T20. In Danone (a previous T10 company, of public companies haven’t
some cases, these companies are for its shift to becoming a nutrition- attempted to transform or haven’t
»» Seven
Seven Transformations
Transformations only just recently embarking on focused firm), have executed achieved measurable new growth.
to Watch
to Watch
their transformation journey. For long-running transformations
instance, Italian energy giant Enel that haven’t yielded new levels
»» T20 finalists are
headquartered
across the world NEW GROWTH AREAS Stock CAGR
COMPANY CEO
(% of total business) (vs. benchmark)

»» Conclusions #21. RELX Group Erik Engstrom digital and analytics (15%) 16% (vs. 4% for FTSE since 2009)

»» T20 Methodology #22. Analog Devices Vincent Roche IoT solutions (15%) 19% (vs. 10% for S&P 500 since 2009)

»» T20 Panel of Judges #23. Danone* Emmanuel Faber nutrition products (29%) 7% (vs. 8% for CAC 40 since 2009)

#24. SAP Bill McDermott cloud services (20%) 13% (vs. 0% for Euro Stoxx 50, 2010)
»» About the authors
and Innosight
#25. Singtel Chua Sock Koong digital and data (25%) 5% (vs. -1% for SGX since 2011)

»» Snapshots of the
#26. ResMed Michael Farrell SaaS services (7%) 26% (vs. 10% for S&P 500 since 2012)
T20 Companies
#27. Enel Francesco Starace smart homes (0.7%) 14% (vs. -3% for Italian Index, 2017)

*previous winner, from the 2017 T10 list

16
»» Introducing the
Transformation 20
THE 27 FINALISTS ARE
»» Top-Level Themes from HEADQUARTERED ACROSS THE WORLD
the Transformation 20

»» The Five Behaviors

of Transformational
Organizations

»» Seven Transformations
to Watch

»» T20 finalists
finalistsare
are
headquartered
headquartered
across
across the world
the world

»» Conclusions

»» T20 Methodology

»» T20 Panel of Judges

»» About the authors

and Innosight

»» Snapshots of the
T20 Companies

USA 11; China 4; Germany 2; France 2; Singapore 2;

U.K. 1; Italy 1; Netherlands 1; Denmark 1; Finland 1; Japan 1

17
»» Introducing the
Transformation 20
CONCLUSION: OVERCOMING
»» Top-Level Themes from THE CRISIS OF COMPLACENCY
the Transformation 20

»» The Five Behaviors

of Transformational
Organizations T he takeaway lesson from
these mission-changers
is clear: In an era of relentless
• Crisis of Commitment:
when at the early stage of a
anymore, what are we?” What
happens if key people feel like
transformation, many leaders they don’t belong anymore?
»» Seven Transformations change, a company survives and and employees worry about
to Watch thrives based not on its size or committing to a new trajectory However, the vast majority
performance at any given time and seeing it through, even of leadership teams never
»» T20 finalists are
but on its ability to reposition in the face of evidence that encounter these three crises.
headquartered
across the world itself to create a new future. the core is in decline. As a chief technology officer we
met with recently asked us: “We
»» Conclusions
Conclusions The leadership teams of the • Crisis of Conflict: when different basically aren’t at any of these
companies we’ve featured parts of the organization fight stages yet. What do you call
»» T20 Methodology here have, to varying degrees, for scarce capital resources the crisis before all of this?”
steered through different types as new growth areas receive
»» T20 Panel of Judges
of organizational crises. a disproportionate share of That caused us to step back to
investment relative to their consider what prevents most
»» About the authors
and Innosight As outlined in "Dual current size. What happens when companies from making the
Transformation" (see graphic key stakeholders complain that decision to transform in the first
»» Snapshots of the on page 19), there are three new growth progress is too slow? place. We’d call this the Crisis
T20 Companies flashpoints that happen as an of Complacency. One driver of
organization change effort is • Crisis of Identity: when the this crisis is that existing data
proceeding successfully but organization realizes, “If we’re misleads because it lags the
can derail the entire plan: not a [fill in the blank] company disruption taking place in the

18
 Deseret Net Income
Indexed to 2015 total = 100
»» Introducing the market. By the time the data 150
Transformation 20 is clear, it is typically too late. A Crisis of Crisis of Crisis of
Commitment Conflict Identity
second problem is that existing 125

»» Top-Level Themes from

customers often serve as poor
the Transformation 20 100

guides to the future, as they tell

New Growth
»» The Five Behaviors companies to provide them better, 75

of Transformational cheaper versions of what they are 50

Organizations currently providing. A final driver New Core Products

Legacy Core Products
of complacency is the constraints 25

»» Seven Transformations that an existing business 0

to Watch 2015 2016 2017 2018 2019 2020
model places on a company.
In "Dual Transformation," the authors explore three organizational crises that threaten to derail any transformation. As
»» T20 finalists are legacy core revenue becomes a smaller part of the business and new growth revenue rises, leaders need to recognize this
headquartered Mirroring Netflix’s subscription- common pattern and steer through these flashpoints. Graphic courtesy of Clark Gilbert, former CEO, Deseret News

across the world based business model, for

example, looked financially courage to choose the difficult when you invest a ton of money
»» Conclusions unattractive to Blockbuster Video, path of breaking out of this prison is the money you invested. It is
who made most of its money via and challenging the status quo. capped. However, when you win,
»» T20 Methodology
Methodology charging late fees. The lessons you create not only an annuity but
are counter-intuitive yet clear: Which brings us to the most a new ecosystem that gives you
»» T20 Panel of Judges
common argument we encounter the opportunity to grow in new
Data misleads. when it comes to embarking on areas for a long time to come.”
»» About the authors
and Innosight Customers deceive. transformation: It’s too risky.
The business model binds. But as one Fortune 500 CEO The Transformation 20 indeed
»» Snapshots of the recently told us, “Our system shows the powerful payoff that
T20 Companies This places companies in the of capitalism totally misprices comes when leaders steer their
prison of the present, where risk.Big moves look like they are organization through these
they perpetuate the past versus really risky. But by and large they crises to imagine and build
creating the future. It takes are not. Because what you lose a bold, new future.

19
»» Introducing the
Transformation 20
T20 METHODOLOGY
»» Top-Level Themes from
the Transformation 20

»» The Five Behaviors We began the process of

identifying candidates for
the Transformation 20 by screening
During this first phase of the
methodology, a small team of
Innosight consultants pored
During round two, we used these
comparative metrics to narrow
the list to 27 finalist candidates, as
of Transformational
Organizations companies in the S&P 500 and over each firm in the S&P 500 voted on by a panel of Innosight
Forbes Global 2000 according and Global 2000 to arrive at a partners: Scott D. Anthony, Rob
»» Seven Transformations to the following questions: list of 52 companies that had Bell and Alasdair Trotter. For
to Watch made a clear commitment to each of company, we created
1. How has this company strategic transformation within a one-page judging profile. We
»» T20 finalists are
exemplified strategic the past 10 years. Our team then sent that presentation of
headquartered
across the world transformation? rated each company using a profiles along with instructions
set of criteria measuring their out to our panel of judges, who
»» Conclusions 2. Has this transformation financials (notably revenue scored each company on a
had a significant impact on growth and stock performance), scale of 1 to 5, with 5 being the
»» T20 Methodology
Methodology customers and its industry the degree to which they had best example of a successful
over the past decade? built meaningful new growth strategic transformation.
»» T20 Panel of Judges
businesses and the degree to We’d like to acknowledge and
3. Does the company show which they had repositioned thank our list of judges and
»» About the authors
and Innosight potential to sustain its their core business. congratulate the T20 winners.
transformation over
»» Snapshots of the the next decade?
T20 Companies

20
»» Introducing the
Transformation 20
T20 PANEL OF JUDGES
»» Top-Level Themes from
the Transformation 20

»» The Five Behaviors

of Transformational
Organizations

»» Seven Transformations
to Watch
Rita McGrath Beh Swan Gin Phil Coughlin
»» T20 finalists are Chair at Columbia Chair, Singapore Economic Chief strategy officer
headquartered
Business School Development Board at Expeditors
across the world

»» Conclusions

»» T20 Methodology

»» T20 Panel
Panelof
ofJudges
Judges

»» About the authors

and Innosight
Amantha Imber Nathan Furr
»» Snapshots of the CEO of Inventium Professor of strategy, INSEAD
T20 Companies

21
»» Introducing the
Transformation 20
ABOUT THE AUTHORS AND INNOSIGHT
»» Top-Level Themes from
the Transformation 20
Scott D. Anthony is a senior Special thanks to the following
»» The Five Behaviors partner at Innosight, based Innosight analysts on the T20
of Transformational in Singapore and a co-author research team: Oliver Cheng,
Organizations of “Dual Transformation: Amol Gundeti, James Hur, Aditya
How to Reposition Today’s Jain, Linh Tran and Bryant Wu.
»» Seven Transformations Business While Creating
to Watch
the Future” (HBR Press). About Innosight
The strategy and innovation
»» T20 finalists are
headquartered Alasdair Trotter is a partner at business of global professional
across the world Innosight, based in California, services firm Huron, Innosight
who collaborates with senior empowers forward-thinking
»» Conclusions leaders on digital transformation. organizations to navigate
disruptive change and own the
»» T20 Methodology Robert D. Bell is a partner at future. The leading authority
Innosight, based in Boston on disruptive innovation and
»» T20 Panel of Judges
and a leader of its industrial strategic transformation, the
& technology business. firm collaborates with clients
»» About
About the
theauthors
authors
and Innosight
and Innosight across a range of industries to
Evan I. Schwartz, a writer create growth strategies, build
»» Snapshots of the focused on innovation and innovation capabilities and
T20 Companies leadership, is Innosight’s accelerate new growth initiatives.
former director of storytelling. Visit us at www.innosight.com.

22
»» Introducing the
Transformation 20 NETFLIX
Nº
1
»» Top-Level Themes from
the Transformation 20
INDUSTRY: Entertainment/ NEW GROWTH: In 2018, Netflix’s
»» The Five Behaviors Internet original content accounted for
of Transformational 37% of its U.S. streams, up from
Organizations REVENUE: $15.8B 14% in 2017. Netflix released 88%
more original programming in CEO
Reed Hastings
»» Seven Transformations HQ: Los Gatos, CA 2018 than it did during 2017.
to Watch

TRANSFORMATION STORY: CORE BUSINESS: Netflix’s

»» T20 finalists are
headquartered
across the world
Shifted from DVDs by mail into
the leading streaming video
content service and now a top
core business of DVD rentals
changed its business model
from single-pay DVD rentals to
44%
»» Conclusions original content provider subscription-based DVD rentals Of revenue from original content
bundled with streaming. While
»» T20 Methodology STRATEGY: In 2012, Netflix streaming continues to grow
entered the content-production domestically and internationally, FINANCIALS: Netflix’s revenue
»» T20 Panel of Judges
industry with its first series, DVD rentals continue to increased by 337.6%, from $3.6B
"Lilyhammer." In 2013, "House of experience net losses, with in 2012 to $15.8B in 2018. Net
»» About the authors
and Innosight Cards" catapulted Netflix to the paid membership dropping income increased more than 70.62
realm of leading original content 17% in 2017 and 19% in 2018 . times, from $17M in 2012 to $1.2B
»» Snapshots of the producer. In 2019, "Roma" marked in 2018. Revenue CAGR: 28%.
T20 Companies Netflix’s first Academy Award win. Stock CAGR: 57.1% (vs. 10% for
the S&P 500 Index) (2012-2018)

23
»» Introducing the
Transformation 20 ADOBE SYSTEMS
Nº
2
»» Top-Level Themes from
the Transformation 20
INDUSTRY: Software/ NEW GROWTH: Adobe’s “Digital
»» The Five Behaviors Digital Media Experiences” segment drives
of Transformational a significant portion of the
Organizations REVENUE: $9.0B company’s growth, representing
CEO
27% ($2.44B) of total revenues Shantanu
»» Seven Transformations HQ: San Jose, CA in 2018. Only seven years prior Narayen
to Watch
in 2011, the digital marketing
TRANSFORMATION STORY: segment contributed $927.8M.
»» T20 finalists are
headquartered
across the world
Moved beyond the traditional
core of creative software into
digital experiences, marketing,
CORE BUSINESS: Revenues
from the legacy digital media
27%
»» Conclusions commerce platforms and ($6.3B) and print and publishing Of revenue from digital experiences
(while reclassifying previous new
analytics while changing its ($261M) segments are 73% growth revenue to the new core)
»» T20 Methodology business model from packaged of total revenue in 2018, down
software to cloud subscriptions from 81% ($3.1B) in 2010.
»» T20 Panel of Judges
Although “Print and Publishing” surged by 570.3% over the same
STRATEGY: In 2009, Adobe is stagnant, “Digital Media” is still period. In addition, Adobe now
»» About the authors
and Innosight refocused on digital experiences, seeing impressive growth — the gets 88% of its revenue from its
marketing and analytics. It segment’s revenue in 2018 was subscription business in 2018,
»» Snapshots of the conducted several acquisitions, $6.3B, up from $5.0B in 2017, compared to 3% in 2009. Revenue
T20 Companies including Omniture in 2009, representing 26% YOY growth. CAGR: 13.3%, 2009-2018. Stock
Neolane in 2013, TubeMogul in CAGR: 26% (vs. 10% for the
2017, and Marketo and Magento FINANCIALS: Revenue more S&P 500 Index), 2009-2018
in 2018, to build required than tripled from 2009 ($2.9B)
capabilities and scale quickly. to 2018 ($9.0B) while net income 24
»» Introducing the
Transformation 20 AMAZON.COM
Nº
3
»» Top-Level Themes from
the Transformation 20
INDUSTRY: Online Retail NEW GROWTH: In 2018, AWS
»» The Five Behaviors produced $25.7B in net sales
of Transformational REVENUE: $232.9B and $7.3B in operating income,
Organizations up from $3.1B and $673M, Chairman,
HQ: Seattle, WA respectively, in 2013. Through President
and CEO
»» Seven Transformations M&A, Amazon has also positioned Jeff Bezos
to Watch
TRANSFORMATION STORY: itself for future new growth
Amazon initiated Amazon Web (e.g., Whole Foods, PillPack).
»» T20 finalists are
headquartered
across the world
Services (Cloud) to overcome the
cost of infrastructure required
to conduct operations. AWS has
CORE BUSINESS: Apart from
being the biggest e-retailer,
11%
»» Conclusions turned into a surprisingly lucrative Amazon boasts the best-selling Of revenue from AWS &
other cloud services
profit engine. Amazon has also e-reader, a sizable share of the
»» T20 Methodology built an entire ecosystem of e-book market, a foothold in
products and services, enabled the tablet market and a growing FINANCIALS: Revenues
»» T20 Panel of Judges
by its Prime membership. library of video titles (including increased by 850.2% from 2009
original content). Core businesses to 2018; net income grew by
»» About the authors
and Innosight STRATEGY: Amazon, at its in North America (outside of AWS) 1016.7% in the same period.
roots, is built to transform. recorded 33% YOY revenue growth Revenue CAGR: 28%, 2009-2018.
»» Snapshots of the When it finds opportunities in 2018 and account for 61% of Stock CAGR: 39%, (vs. 10% for
T20 Companies to serve new customers or Amazon’s total 2018 net sales. the S&P 500 Index), 2009-2018
existing customers in new ways,
it conceives and builds new
business models to exploit them.

25
»» Introducing the
Transformation 20 TENCENT HOLDINGS
Nº
4
»» Top-Level Themes from
the Transformation 20
INDUSTRY: Internet NEW GROWTH: Non-core
»» The Five Behaviors businesses grew revenue by 80%
of Transformational REVENUE: $46.9B YOY in 2018, primarily through
Organizations Fintech and cloud services.
HQ: Shenzhen, China Cloud revenue increased by CEO
Pony Ma Huateng
»» Seven Transformations over 100% to $1.3B. Tencent’s
to Watch
TRANSFORMATION STORY: fintech platform managed
Tencent transformed from an over $89.3B in assets.
»» T20 finalists are
headquartered
across the world
online messenger and video
game business to an all-around
technology business that has
CORE BUSINESS: Tencent’s core
business continued to grow strong
25%
»» Conclusions presence in entertainment, in 2018. Its social communication Of revenue from Fintech, Cloud
and other technologies
autonomous vehicle, cloud platforms, Weixin and Wechat,
»» T20 Methodology computing and fintech. have more than 1 billion monthly
active users by the end of income increased by 682.2%,
»» T20 Panel of Judges
STRATEGY: From 2011 to 2019, 2018. On the video games side, from $1.5B in 2017 to $12B in
Tencent has made a series Tencent’s smart game business 2018. Profit margin declined
»» About the authors
and Innosight of investments in technology achieved $11.5B in revenue in from 35.9% to 25.6% during this
companies and startups in 2018, up 24% YOY. The company period due to heavy investment in
»» Snapshots of the entertainment, autonomous also earned $8.6B in online technology and original content.
T20 Companies vehicle, ride-sharing and fintech. advertising revenue, up 44% YOY. Revenue CAGR: 41%. Stock
The company also launched CAGR: 32% (vs. 1% CAGR for the
its own products in cloud FINANCIALS: Revenue increased Hong Kong Index) (2011-2018)
computing and online education. by 997.3% from 2011 to 2018. Net

26
»» Introducing the
Transformation 20 MICROSOFT
Nº
5
»» Top-Level Themes from
the Transformation 20
INDUSTRY: Computer NEW GROWTH: In 2017 and
»» The Five Behaviors Hardware and Software, 2018 combined, commercial
of Transformational Consumer Electronics cloud revenue increased by
Organizations 56% to $23.3B, within which
REVENUE: $110.4B server products and cloud CEO
Satya Nadella
»» Seven Transformations services revenue increased
to Watch
HQ: Redmond, WA by 21% and is driven by Azure
revenue growth of 91%.
»» T20 finalists are
headquartered
across the world
TRANSFORMATION STORY:
Microsoft has transformed from
a business model based primarily
CORE BUSINESS: Microsoft’s
core divisions — productivity
29%
»» Conclusions on selling products, licenses (IP) and business processes and Of revenue from Intelligent Cloud
and devices to a cloud-based personal computing — still
»» T20 Methodology platform-as-a-service business. contribute significantly to the
company’s top line. In 2018 and while net income declined by
»» T20 Panel of Judges
STRATEGY: Microsoft Azure has 2017, Office Commercial revenue 11.7% due to tax payment per the
been the catalyst that drives the increased by 11%, which is Tax Cuts. Revenue CAGR: 7%.
»» About the authors
and Innosight growth of the Intelligent Cloud driven by Office 365 commercial Stock CAGR: 17% (vs. 9% for
Business at the company. In revenue growth of 41% . the S&P 500 index), 2010-2018
»» Snapshots of the addition, Microsoft also invested
T20 Companies in cloud-based services, AI FINANCIALS: Revenue increased
programming and AR/VR. by 76.6% from 2010 to 2018

27
»» Introducing the
Transformation 20 ALIBABA
Nº
6
»» Top-Level Themes from
the Transformation 20
INDUSTRY: Internet NEW GROWTH: Ant grew to have
»» The Five Behaviors & Catalog Retail a valuation of $150B in 2018. Its
of Transformational flagship Tianhong Yu’e Bao fund
Organizations REVENUE: $56.2B has 588 million users to date.
AliHealth’s 2018 revenue was CEO
Daniel Zhang
»» Seven Transformations HQ: Hangzhou, China $368M. AliSports’ estimated
to Watch
2017 revenue was $859M. Digital
TRANSFORMATION STORY: and Entertainment recorded
»» T20 finalists are
headquartered
across the world
Since inception, Alibaba has
positioned itself as an innovation
powerhouse, successfully
a 2017 revenue of $2.1B.

CORE BUSINESS: Alibaba’s core

14%
»» Conclusions transforming from an internet businesses in e-commerce and Of revenue from Fintech,
Sports, Digital Technology
e-commerce and retail company cloud computing still contribute and Entertainment
»» T20 Methodology to a technology business. significantly to the group’s overall
revenue and growth. Alibaba
»» T20 Panel of Judges
STRATEGY: In 2014, Alibaba Cloud revenue is nearing a $4B FINANCIALS: Revenue increased
launched Ant Financial Service, annual run rate (FY2018). While by 356.8% from 2014 to 2018.
»» About the authors
and Innosight which offers financial services Alibaba e-commerce business Net income increased by 232.7%,
and the rebranded Alipay gained $20.8B in revenue in from $3.93B in 2014 to $13.1B
»» Snapshots of the platform. The group expanded the same year, new growth in 2018. Profit margin declined
T20 Companies into entertainment and original areas accounted for more than from 31.9% to 23.3% during this
content through the Digital Media half of the group’s top line. period. Revenue CAGR: 46%.
division. In 2015, the company Stock CAGR: 8% (vs. 1% for
launched AliHealth and AliSports. the NYSE index) (2014-2018)

28
»» Introducing the
Transformation 20 ØRSTED
Nº
7
»» Top-Level Themes from
the Transformation 20
INDUSTRY: Energy into North America and Asia.
»» The Five Behaviors Its biggest investments are in
of Transformational REVENUE: $11.5B offshore wind farms, which in
Organizations 2018 accounted for DKK$27.8B of
HQ: Fredericia, Denmark its DKK$30B in operating profit. CEO
Henrik Poulsen
»» Seven Transformations
to Watch
TRANSFORMATION STORY: CORE BUSINESS: In 2017,
Moved from a state-owned oil and Ørsted (formerly DONG Energy)
»» T20 finalists are
headquartered
across the world
gas exploration and production
company to stage a 2016 IPO
as the largest offshore wind
divested its oil & gas production.
Moreover, it decided to phase
out coal completely as fuel at
93%
»» Conclusions farm company in the world. its power plants by the end of Of operating profit from
Offshore Wind Farms
2022. Onshore & offshore wind is
»» T20 Methodology STRATEGY: In 2017, Danish Oil rapidly becoming the new core. In
and Natural Gas (DONG) changed 2018, the green share of Ørsted’s CAGR: 30% (vs. 0% for the OMX
»» T20 Panel of Judges
its name to Ørsted and shifted energy generation reached 75%. Copenhagen 20 Index), 2017-2018
its strategy away from gas- and
»» About the authors
and Innosight oil-based energy production FINANCIALS: Revenue rose 6.5%
to green energy, aiming for from 2013 to 2018, while operating
»» Snapshots of the 99% renewables by 2025. profit (EBITDA) increased 1325%
T20 Companies over the same period. Profit
NEW GROWTH: Ørsted has margins improved from -2.2% in
invested in green energy assets 2013 to 25.4% in 2018. Revenue
since 2009 and is now expanding CAGR: 1%, 2013-2018. Stock

29
»» Introducing the
Transformation 20 INTUIT
Nº
8
»» Top-Level Themes from
the Transformation 20
INDUSTRY: Information NEW GROWTH: The Online
»» The Five Behaviors Technology Ecosystem, now offering 1,400
of Transformational apps, has been the key growth
Organizations REVENUE: $6B catalyst for Intuit in the past five
years. The Online Ecosystem CEO
Sasan Goodarzi
»» Seven Transformations HQ: Mountain View, CA revenue increased $340M
to Watch
or by 40% in 2018, driven by
TRANSFORMATION STORY: new customer acquisition.
»» T20 finalists are
headquartered
across the world
Intuit transformed from a
provider of products and services
to an online ecosystem of
CORE BUSINESS: Sold off
founding Quicken personal
14%
»» Conclusions financial services for small and finance franchise to focus on Of revenue from Online Ecosystem
medium enterprises (SMEs). more profitable growth — such
»» T20 Methodology as from its strong-performing
STRATEGY: Simplifying QuickBooks (QB) and TurboTax FINANCIALS: Revenue increased
»» T20 Panel of Judges
accounting and tax prep by businesses. QB online customer by 58.2% from 2012 to 2018;
offering financial applications retention rate rose by 16% thanks net income grew by 67.8% in
»» About the authors
and Innosight in one online platform and to the customer-financial advisor the same period. Profit margins
matching SMEs with accredited matchmaking program. QB rose from 20.8% in 2012 to
»» Snapshots of the financial advisors allowed the online subscribers rose by 43%, 22.1% in 2018. Revenue CAGR:
T20 Companies company to become a one-stop with revenue up 24%. Desktop 8%, 2012-2018. Stock CAGR:
shop for financial service. Ecosystem revenue increased 22% (vs. 10% for S&P 500)
$115M or by 7% in 2018, driven
by QB Enterprise subscribers.

30
»» Introducing the
Transformation 20 PING AN
Nº
9
»» Top-Level Themes from
the Transformation 20
INDUSTRY: Financial NEW GROWTH: In 2018, Lufax
»» The Five Behaviors Services and Healthcare had over 33 million registered
of Transformational users on its platform, with
Organizations REVENUE: $162.3B assets managed up 5.3% from
2017 (to $68.7M). Ping An's CEO
Ma Mingzhe
»» Seven Transformations HQ: Shenzhen, China Good Doctor platform also
to Watch
raised $400M at a post-money
TRANSFORMATION STORY: valuation of $5.4B, preparing
»» T20 finalists are
headquartered
across the world
Established as a financial services
and insurance company, Ping
An transformed itself into a
for an IPO with the HKEX.

CORE BUSINESS: Ping An’s

6%
»» Conclusions cloud tech business providing core retail business continued Of net profit from Fintech
and Health Tech
fintech and AI-based medical to record strong growth, with
»» T20 Methodology imaging and diagnostics. the division’s revenue growing
by 44.4% YOY, accounting for from 7.9% to 11.1% during
»» T20 Panel of Judges
STRATEGY: In 2012, Ping An 66.2% of the group’s net profit. this period. Revenue CAGR:
put all of its systems in the From 2017, retail customers also 20%. Stock CAGR: 17% (vs.
»» About the authors
and Innosight cloud, investing its revenue into grew by 26.45% to 166 million. 2% for the Hang Seng Stock
R&D for 10 years. The company Market Index) (2012-2018)
»» Snapshots of the launched the finance platform FINANCIALS: Revenue increased
T20 Companies Lufax to increase the bank’s by 199.1% from 2012 to 2018.
presence in fintech and health Net income increased by 322.1%,
tech. In 2014, Ping An launched from $4.3B in 2012 to $18.1B in
its health tech division. 2018. Profit margin increased

31
»» Introducing the
Transformation 20 DBS GROUP
Nº
10
»» Top-Level Themes from
the Transformation 20
INDUSTRY: Banking NEW GROWTH: In 2016,
»» The Five Behaviors DBS launched digitbank, a
of Transformational REVENUE: $9.6B mobile-only banking service,
Organizations in India and Indonesia without
HQ: Singapore any prior physical presence CEO
Piyush Gupta
»» Seven Transformations in these geographies. Digital
to Watch
TRANSFORMATION STORY: customers are now 48% of
Transforming from a traditional total, versus 33% in 2015.
»» T20 finalists are
headquartered
across the world
regional bank to a global digital
platform company, around a
cultural vision of a “27,000-
CORE BUSINESS: DBS has
been introducing new digital
48%
»» Conclusions person startup.” In 2018, crowned offerings to complement its core Of customer base is on
digital platforms
“Best Bank in the World” offerings in all three of its core
»» T20 Methodology business segments, namely,
STRATEGY: DBS is on a mission Institutional Banking, Consumer FINANCIALS: Revenue rose by
»» T20 Panel of Judges
to make its offerings seamless Banking/Wealth Management 33.9% from 2013 to 2018 while
and integrate into customers’ and Treasury & Markets. While net income surged by 34.8% over
»» About the authors
and Innosight lives by delivering simple, fast and Treasury’s income declined by the same period. Profit margins
contextual banking experience 24%, that of Institutional Banking increased from 42.6% in 2013 to
»» Snapshots of the in the digital age. In pursuit of and Consumer Banking grew by 42.9% in 2018. Revenue CAGR:
T20 Companies this, the bank wants to digitize 1% and 9% respectively in 2018. 6%, 2013-2018. Stock CAGR:
its services and processes and 12% (vs. -1% for the Singapore
become a data-first organization. Exchange Limited), 2013-2018

32
»» Introducing the
Transformation 20 A. O. SMITH
Nº
11
»» Top-Level Themes from
the Transformation 20
INDUSTRY: Industrial/Water Tech NEW GROWTH: After selling
»» The Five Behaviors its electrical products, A. O.
of Transformational REVENUE: $3.2B Smith became a pure play
Organizations water technology/heating firm.
HQ: Milwaukee, WI Sales from water technology CEO
Kevin Wheeler
»» Seven Transformations in 2018 were ~$3.0B, up from
to Watch
TRANSFORMATION STORY: $1.38B from water technology in
Shifting focus from its legacy 2009. In 2009, 69% of revenue
»» T20 finalists are
headquartered
across the world
business in automotive parts
and motors to seize growth in
water technology through M&A.
was from water technology;
in 2018, it is now 100%. 100%
»» Conclusions CORE BUSINESS: In 2009, A. Of revenue from water technology
STRATEGY: Once a company O. Smith still had an electrical
»» T20 Methodology focused on automotive parts and products division that produced
motors, A. O. Smith made the $620.4M in revenue. This CAGR: 10%, 2009-2018. Stock
»» T20 Panel of Judges
largest acquisition in its history in division was sold in 2011 to CAGR: 25%, (vs. 10% for the
2006 to acquire large assets in the Regal Beloit for $875M. S&P 500 Index), 2009-2018
»» About the authors
and Innosight water technology industry (GSW
Inc. and American Water Heater FINANCIALS: Revenue increased
»» Snapshots of the Company). It doubled down on by 131.8% from 2009 to 2018;
T20 Companies water technology in 2011 when it net income grew by 446.3%
sold its electric motor business. in the same period. Revenue

33
»» Introducing the
Transformation 20 NESTE
Nº
12
»» Top-Level Themes from
the Transformation 20
INDUSTRY: Energy and renewable solvents, as well
»» The Five Behaviors as raw materials for bioplastics.
of Transformational REVENUE: $17.2B Renewables now account for
Organizations nearly €1 billion in operating
HQ: Espoo, Finland profits, 70% of its total. CEO
Peter Vanacker
»» Seven Transformations
to Watch
TRANSFORMATION STORY: CORE BUSINESS: Neste, at
A regional oil and gas company its core, produces, refines and
»» T20 finalists are
headquartered
across the world
transforms into a global leader
in renewable biofuels.
markets oil products, provides
engineering services and licenses
production technologies. While
70%
»» Conclusions STRATEGY: Neste was revenue from oil products Operating profits from
renewables as % of total
established in 1948 as the state increased by 19% from 2017
»» T20 Methodology petrol company of Finland to to 2018 (68% of Neste’s total
ensure the availability of refined revenue), the segment’s operating over the same period. Profit
»» T20 Panel of Judges
fuels. The company set out to profit declined by ~70% due margins improved from 2.3% in
make renewable biodiesel from to weak USD exchange rate 2009 to 5.2% in 2018. Revenue
»» About the authors
and Innosight hydrotreated vegetable oil. and lower reference margin. CAGR: 5%, 2009-2018. Stock
CAGR: 24% (vs. 7% for the OMX
»» Snapshots of the NEW GROWTH: Starting in 2005, FINANCIALS: Revenue rose by Helsinki 25 Index), 2010-2018
T20 Companies shifted to producing renewable 54.8% from 2009 to 2018, while
biodiesel, renewable jet fuels net income surged by 246.2%

34
»» Introducing the
Transformation 20 SIEMENS
Nº
13
»» Top-Level Themes from
the Transformation 20
INDUSTRY: Industrial NEW GROWTH: Since 2014,
»» The Five Behaviors Siemens’ Digital Factory and
of Transformational REVENUE: $95.5B Process Industries have gradually
Organizations grown and contributed to the
HQ: Munich, Germany company’s topline. Digital CEO
Joe Kaeser
»» Seven Transformations Factory’s revenue increased by
to Watch
TRANSFORMATION STORY: 14% between 2017 and 2018.
In 2014, Siemens announced
»» T20 finalists are
headquartered
across the world
Vision 2020, which detailed
an organizational overhaul,
restructuring and strategic
CORE BUSINESS: Even though
Siemens is driving its focus away
from industrial manufacturing
26%
»» Conclusions shift from energy and industrial and oil and gas, its core business Of revenue from Digital Factory
and Process Industries
manufacturing to digitalization. in energy management, medtech,
»» T20 Methodology and industrial automation still
STRATEGY: Vision 2020 saw contributed more than $68.7B in 2018. However, profit margin
»» T20 Panel of Judges
Siemens shredding its traditional to the company’s overall declined from 7.7% to 7.4% during
focus on oil and gas and revenue in 2018. this period. Revenue CAGR: 3%.
»» About the authors
and Innosight industrial manufacturing, while Stock CAGR: 8% (vs. 8% for
adding new business divisions FINANCIALS: Revenues the DAX index) (2014-2018)
»» Snapshots of the — Digital Factory and Process increased by 10.7% from 2014 to
T20 Companies Industries — to transform into 2018. Net income increased by
a digital and service company. 6.5%, from $6.6B in 2014 to $7B

35
»» Introducing the
Transformation 20 SCHNEIDER ELECTRIC
Nº
14
»» Top-Level Themes from
the Transformation 20
INDUSTRY: Electronics/Industrial NEW GROWTH: StruxureWare
»» The Five Behaviors Software, an integrated software
of Transformational REVENUE: $28.5B suite for operational management,
Organizations bridges the gap between IT and
CEO
HQ: Rueil-Malmaison, France other systems. EcoStruxure, Jean-Pascal
»» Seven Transformations a platform that delivers IoT- Tricoire
to Watch
TRANSFORMATION STORY: enabled solutions, reported
Pursuing a digital transformation a 34% YOY growth (2018).
»» T20 finalists are
headquartered
across the world
that would shift it from a
pure hardware supplier to an
energy management provider
CORE BUSINESS: Schneider
Electric has introduced close-
22%
»» Conclusions via an open IoT platform. to-core offerings like energy Of revenue from IoT-
enabled solutions
dashboards, electric vehicles
»» T20 Methodology STRATEGY: In 2012, Schneider and smart cities. Medium
Electric, a leading industrial Voltage contributed $4.8B FINANCIALS: Revenue rose by
»» T20 Panel of Judges
maker of energy and smart grid (17% of total revenue) despite a 3.3% from 2012 to 2018, and net
hardware, placed a big bet on 4% decrease YOY. Low Voltage income grew by 26.9% over the
»» About the authors
and Innosight software and services as the generated $13B in revenue same period. Profit margins grew
company's future direction. In (45% of total revenue) with a from 7.7% in 2012 to 9.4% in 2018.
»» Snapshots of the 2016, the company announced the 8.3% YOY growth. Secure Power Revenue CAGR: 1%, 2012-2018.
T20 Companies launch of IoT-enabled solutions to contributed 14% of the total rev. Stock CAGR: 8% (vs. 6% for the
make its offerings interoperable. and a 4.9% YOY growth in 2018. S&P Global 100 Index), 2012-2018

36
»» Introducing the
Transformation 20 CISCO SYSTEMS
Nº
15
»» Top-Level Themes from
the Transformation 20
INDUSTRY: Networking NEW GROWTH: The non-core
»» The Five Behaviors Equipment (applications, security, services
of Transformational and other products) business
Organizations REVENUE: $49.3B was responsible for roughly
43% of 2018’s revenue. Revenue CEO
Chuck Robbins
»» Seven Transformations HQ: San Jose, CA from subscriptions was 54% of
to Watch
Cisco’s software applications
TRANSFORMATION STORY: and services revenue in 2018.
»» T20 finalists are
headquartered
across the world
Cisco has been transforming
its business from selling
networking products and
CORE BUSINESS: Cisco’s
infrastructure platforms segment
43%
»» Conclusions services to becoming a digital (networking technologies of Of revenue from non-core
businesses and products
IT solutions provider while also switching, routing, data center
»» T20 Methodology moving into adjacencies. products and wireless) is
considered its core business, FINANCIALS: Revenue increased
»» T20 Panel of Judges
STRATEGY: In 2010, the and the company continues to by 23.2% from 2010 to 2018;
strategy expanded from make progress towards shifting net income fell by 98.6% in the
»» About the authors
and Innosight a focus on core growth to to software, subscriptions and same period. Revenue CAGR:
include growth in adjacent cloud solutions. Revenue from 2.6%, 2009-2018. Stock
»» Snapshots of the market territories by 2015. core products increased by 2.4%, CAGR: 9%, (vs. 9% for the
T20 Companies from $12.3B to $12.6B in 2018. S&P 500 index), 2010-2018

37
»» Introducing the
Transformation 20 ECOLAB
Nº
16
»» Top-Level Themes from
the Transformation 20
INDUSTRY: Chemicals NEW GROWTH: After a $8 billion
»» The Five Behaviors merger with Nalco in 2011, Ecolab
of Transformational REVENUE: $14.7B has expanded and reinforced
Organizations its product offerings to include
HQ: Saint Paul, MN water and energy solutions and CEO
Douglas Baker Jr.
»» Seven Transformations services. Water segment sales
to Watch
TRANSFORMATION STORY: increased by 7% in 2018.
Starting out as a producer of a
»» T20 finalists are
headquartered
across the world
carpet cleaning solution, Ecolab
has evolved to become a market
leader for cleaning and food
CORE BUSINESS: Pre-merger,
Ecolab was primarily focused on
cleaning and food safety products
44%
»» Conclusions safety products, as well as a and services. Currently, it is Of revenue from water
and energy services
provider of custom solutions for focused on integrating digital and
»» T20 Methodology water and energy conservation. harnessing data to manage risks
and conserve energy and water. FINANCIALS: Revenue rose by
»» T20 Panel of Judges
STRATEGY: Ecolab’s “Circle the Overall, Ecolab’s Global Industrial 116% from 2011 to 2018 while
Customer — Circle the Globe” segment revenue increased by net income surged by 209%
»» About the authors
and Innosight strategy is focused on providing 7% while Global Institutional over the same period. Adjusted
a comprehensive set of cleaning, segment revenue increased profit margins improved from
»» Snapshots of the food safety and water treatment by 6% from 2017 to 2018. 6.8% in 2011 to 9.7% in 2018.
T20 Companies services to customers globally. Revenue CAGR: 12%, 2011-2018.
Stock CAGR: 16% (vs. 9% for
S&P 500 since 2011), Ecolab
is up 22% vs. S&P 500 13%.

38
»» Introducing the
Transformation 20 FUJIFILM HOLDINGS
Nº
17
»» Top-Level Themes from
the Transformation 20
INDUSTRY: Healthcare NEW GROWTH: In healthcare,
»» The Five Behaviors and Electronics Fujifilm launched a series
of Transformational of diagnosis X-rays and
Organizations REVENUE: $21.6B scanners. The company also
developed and marketed CEO
Shigetaka Komori
»» Seven Transformations HQ: Tokyo, Japan pharmaceutical drugs using
to Watch
existing chemical compounds
TRANSFORMATION and launched a skincare and
»» T20 finalists are
headquartered
across the world
STORY: Transformed from
a photography-centric firm
to a healthcare products and
makeup line, ASTALIFT.

CORE BUSINESS: Fujifilm’s

18%
»» Conclusions medical imaging company core business is around photo Of revenue from
healthcare business
films. Over the past decade,
»» T20 Methodology STRATEGY: In 2010, Fujifilm the company has shifted its
succeeded at shifting its core business toward digital FINANCIALS: Revenue increased
»» T20 Panel of Judges
business model away from cameras and imaging. The photo- by 9.7% from 2010 to 2018
being photo-film-centric. In imaging segment accounted while net income surged by
»» About the authors
and Innosight addition to improving its core for 15.7% of the company’s 116.3% over the same period.
business sales by catching top line and recorded a 12.1% Profit margins improved from
»» Snapshots of the up to the digital camera wave, growth from 2017, which was 2.9% in 2010 to 5.7% in 2018.
T20 Companies Fujifilm invested in healthcare, driven by a strong increase in Revenue CAGR: 1%, 2010-2018.
leveraging existing imaging sales of instant photo systems Stock CAGR:7% (vs. 6% for
and chemical technologies. (e.g., instax instant cameras). the TOPIX index), 2010-2018

39
»» Introducing the
Transformation 20 AIA GROUP
Nº
18
»» Top-Level Themes from
the Transformation 20
INDUSTRY: Life and NEW GROWTH: After three
»» The Five Behaviors Health Insurance years, AIA Vitality is available in 10
of Transformational countries, with the number of full
Organizations REVENUE: $36.3B Vitality members tripling in 2017.
In 2018, AIA Vitality’s annualized CEO
Ng Keng Hooi
»» Seven Transformations HQ: Hong Kong, China net premium grew by 85%.
to Watch

TRANSFORMATION STORY: CORE BUSINESS: The

»» T20 finalists are
headquartered
across the world
AIA Group transformed from a
health insurance provider into a
collaborator with consumers by
company’s core business
continues to grow steadily.
In 2017, agency distribution
10%
»» Conclusions creating AIA Vitality — a major accounted for approximately 70% Of revenue from AIA Vitality
wellness and prevention business. of the group’s total VONB*, with
»» T20 Methodology growth of 28% to $2.5B in 2017.
STRATEGY: In 2013, AIA On the other hand, partnership FINANCIALS: Revenue increased
»» T20 Panel of Judges
Group launched AIA Vitality, distribution exceeded $1B for the by 65.5% from 2013 to 2018.
the first science-based, first time for the group. (*VONB Net income increased by 13.3%
»» About the authors
and Innosight comprehensive wellness is the Value of New Business: the from $2.8B in 2013 to $3.2B in
program in the Asia-Pacific present value of total premium 2018. Profit margin decreased
»» Snapshots of the region. The program provides sales confirmed to be received from 13% to 8.9% during this
T20 Companies wellness knowledge, tools and from present to future) period. Revenue CAGR: 11%.
motivation to AIA members. Stock CAGR: 15% (vs. 2% for the
Hong Kong Index) (2013-2018)

40
»» Introducing the
Transformation 20 DELL TECHNOLOGIES
Nº
19
»» Top-Level Themes from
the Transformation 20
INDUSTRY: Info Tech NEW GROWTH: Dell’s integration
»» The Five Behaviors of EMC resulted in two new
of Transformational REVENUE: $90.6B revenue segments (ISG and
Organizations VMware), which added up to
HQ: Round Rock, TX about $48.5B in revenue in 2018 CEO
Michael S. Dell
»» Seven Transformations (more than 50% of Dell’s top line).
to Watch
TRANSFORMATION STORY:
During its time as a private CORE BUSINESS: Client
»» T20 finalists are
headquartered
across the world
company, Dell shifted from being
a hardware company to being
a cloud business integrating
Solutions Group (CSG) is the
company’s core, including
branded hardware (desktops,
51%
»» Conclusions EMC’s storage management, workstations and notebooks) Of revenue from ISG and VMWare
tripling its value from 2013. and peripherals. CSG generated
»» T20 Methodology ~$43.2B in revenue (~50%
STRATEGY: Dell has the ability to of total 2018 revenue) and is FINANCIALS: Revenue increased
»» T20 Panel of Judges
offer secure, integrated solutions mainly driven by PC sales. Dell by 59.2% from 2012 to 2018;
that extend from edge to core considered CSG to be a significant net income fell by -197.4% in
»» About the authors
and Innosight to cloud and is at the forefront part of its transformation as it the same period. Revenue
of the software-defined and absorbs overhead and allows CAGR: 7%, 2012-2018. Stock
»» Snapshots of the cloud native infrastructure era. for scaled procurement. CAGR: 26%, (vs. 11% for the
T20 Companies S&P 500 index), 2013-2018

41
»» Introducing the
Transformation 20 PHILIPS
Nº
20
»» Top-Level Themes from
the Transformation 20
INDUSTRY: Health Tech segments, namely, Personal
»» The Five Behaviors Health, Diagnosis and
of Transformational REVENUE: $20.8B Treatment, and Connected
Organizations Care & Health Informatics.
HQ: Amsterdam, Netherlands CEO
Frans van Houten
»» Seven Transformations CORE BUSINESS: Philips has
to Watch
TRANSFORMATION STORY: established two stand-alone
Split its lighting core from its entities in health tech and
»» T20 finalists are
headquartered
across the world
healthcare growth businesses,
transforming itself into a
healthcare technology company
lighting through a decade-
long transformation. Philips
only owned 16.5% of Signify
65%
»» Conclusions (formerly Philips Lighting) as of Of revenue from Healthcare,
after accounting for
STRATEGY: In September 2018. Even though Philips still separation of Lightning
»» T20 Methodology 2014, Philips announced its recorded $636M in 2018 sales
plan to sharpen its strategic (compared to $462M in 2017)
»» T20 Panel of Judges
focus by establishing two stand- from Signify, Philips planned margins improved from 1.9% in
alone companies focused to completely divest from 2014 to 6% in 2018. Revenue
»» About the authors
and Innosight on health tech and lighting Signify in the next few years. CAGR: -4%, 2014-2018. Stock
solutions opportunities. CAGR: 6% (vs. 7% for the
»» Snapshots of the FINANCIALS: Revenue fell by S&P 500 Index), 2014-2018
T20 Companies NEW GROWTH: In the 15.3% from 2014 to 2018 while
area of health technology, net income surged by 165.2%
Philips has focused on three over the same period. Profit

42